Archives: FAQs

What’s the VA loan?

A VA loan is a loan program offered by the Department of Veterans Affairs (VA) to help service members, veterans, and eligible surviving spouses buy homes.  The VA does not…

What’s USDA Loan?

The Rural Housing Service, part of the U.S. Department of Agriculture (USDA) offers mortgage programs with no down payment and generally favorable interest rates to rural homebuyers who meet the…

What’s the Origination Fee?

An origination fee is what the lender charges the borrower for making the mortgage loan.  The origination fee may include processing the application, underwriting and funding the loan, and other…

What’s Mortgage Insurance?

Mortgage insurance protects the lender if you fall behind on your payments. Mortgage insurance is typically required if your down payment is less than 20 percent of the property value.…

What’s the Margin?

The margin is the number of percentage points added to the index by the mortgage lender to set your interest rate on an adjustable-rate mortgage (ARM) after the initial rate…

What’s Initial adjustment cap?

An initial adjustment cap is typically associated with adjustable-rate mortgages (ARMs). This cap determines how much the interest rate can increase the first time it adjusts after the fixed-rate period…

Home inspection

A home inspection is often part of the home buying process. You typically have the right to hire a home inspector to examine the property and point out its strengths…

What’s Foreclosure?

Foreclosure is when the lender or servicer takes back property after the homeowner fails to make mortgage payments. In some states, the lender has to go to court to foreclose…

What’s FHA loan?

FHA loans are loans from private lenders that are regulated and insured by the Federal Housing Administration (FHA). FHA loans differ from conventional loans because they allow for lower credit…

What’s Fannie Mae?

The Federal National Mortgage Association (Fannie Mae) purchases and guarantees mortgages from lending institutions in an effort to increase affordable lending. Fannie Mae is not a federal agency. It is…

What Is the Prime Rate?

The prime rate is the interest rate that commercial banks charge their most creditworthy corporate customers. The federal funds overnight rate serves as the basis for the prime rate, and…

Initial Interest Rate Cap

An initial interest rate cap is defined as the maximum amount that the interest rate on an adjustable-rate loan can adjust at the first scheduled rate adjustment. Interest rate caps…

Home Appraisal

An appraisal is a professional opinion of your home’s value and is an important step in the home-buying process. Appraisals are conducted by licensed or certified professionals, who provide opinions…

Fixed-rate Mortgage

The term “fixed-rate mortgage” refers to a home loan that has a fixed interest rate for the entire term of the loan. This means that the mortgage carries a constant…

FHA Limits 2022

For 2022, the FHA floor was set at $420,680 for single-family home loans. This minimum lending amount covers most U.S. counties. The FHA ceiling represents the maximum loan amount. For…

FHA Loans

An FHA-insured loan is a US Federal Housing Administration mortgage insurance-backed mortgage loan that is provided by an FHA-approved lender. FHA mortgage insurance protects lenders against losses. An FHA loan…